iCAD Reports 14.3% Revenue Growth to $4.95 Million in Q1 2024

iCAD, Inc. reported a total revenue of $4.95 million for the first quarter of 2024, marking a 14.3% increase from $4.33 million in the same period of 2023. The growth was primarily driven by a 26.1% rise in product revenue, which reached $3.10 million, up from $2.46 million a year earlier. Service revenue remained stable at approximately $1.85 million. The company’s gross profit also improved, totaling $4.11 million, or 83% of revenue, compared to $3.54 million, or 82% of revenue, in the prior year.

Operating expenses decreased significantly by 18.1% to $5.55 million from $6.78 million in the previous year. This reduction was largely attributed to cost-saving measures implemented by management, particularly in marketing and administrative expenses, which fell by 11.8% and 33.3%, respectively. As a result, iCAD's loss from operations narrowed to $1.44 million, down from a loss of $3.24 million in the first quarter of 2023. The net loss for the quarter was $1.22 million, or $0.05 per share, compared to a net loss of $3.78 million, or $0.15 per share, in the same period last year.

In terms of strategic developments, iCAD completed the sale of its Xoft business line on October 23, 2023, which has since been classified as a discontinued operation. This transition has allowed the company to focus solely on its cancer detection segment, which includes advanced imaging and workflow products. The company is also shifting its marketing strategy towards subscription-based revenue models, which may impact short-term revenue recognition but is expected to enhance long-term growth.

Operationally, iCAD reported a cash and cash equivalents balance of $20.28 million as of March 31, 2024, down from $21.67 million at the end of 2023. The company’s net working capital stood at $22.9 million, with a current ratio of 4.72, indicating a strong liquidity position. The company’s employee headcount has been reduced by approximately 28% as part of a restructuring plan initiated in early 2023, which is expected to align its cost structure with its strategic goals.

Looking ahead, iCAD anticipates continued demand for its cancer detection products, particularly as it enhances its subscription offerings. However, the company remains cautious about potential impacts from ongoing global economic uncertainties, including the effects of the COVID-19 pandemic and geopolitical tensions. iCAD believes its current liquidity and capital resources are sufficient to sustain operations through at least the next 12 months, while it continues to monitor market conditions closely.